Hiked Duty Leads into Tripling of Scrap Metal Export Revenues

Following acute shortage of scrap metal at domestic mills, the country had raised the export duty on scrap metals from €10 per tonne to €30 per tonne in 2016.

SEATTLE (Scrap Monster): The revenue from export duty on scrap metals almost tripled in Ukraine over the past one year. Meantime, the scrap metal deficit at the country’s metallurgical plants has declined by almost 40%, which clearly indicates better availability of domestic scrap at local mills. As per estimates, the scrap metal deficit dropped from 725,000 tonnes to 425,000 tonnes.

According to figures posted by Viktor Halasiuk, Head of the Parliamentary Committee on Industry, the revenues increased sharply from $4.1 million to $12.6 million. He attributed the tremendous jump in revenues to the success of country’s metallurgical law. Also, Halasiuk called for further extension of the higher scrap export duty.

Following acute shortage of scrap metal at domestic mills, the country had raised the export duty on scrap metals from €10 per tonne to €30 per tonne in 2016. Accordingly, the Ukranian Parliament adopted it as a law. Although a bill extending higher duties for another two years was approved in April last year, the President had vetoed it by reducing the extension period to one year. Currently, the country collects higher duties on scrap metal shipments out of the country. The law is due to be reviewed next year.